It should, but nobody can quite agree on exactly what should and shouldn't be allowed. Fraud, everyone agrees no. Porn, drugs, guns, gambling, foreign work, etc. everyone has a different opinion; governments abuse their power to prohibit transacting "harmless" goods/services, the people who transact those things reject the prohubition and turn to grey and black markets, then suffer from the lack of strong regulation therein.
Also, I'm not sure if a radical lack of regulation / full decentralization is a good thing when we are talking about money.
In my opinion, money should be regulated by governments.
But this discussion tends to escalate and the arguments have been made ad nauseam, so I'm tuning out here, sorry.